Participants from Sweco. Sweco + FMC Group Going for #1 in Finland and the Nordics. Capital Markets Day, Helsinki, May 22, 2012.

Transcription

1 Sweco + FMC Group Going for #1 in Finland and the Nordics Capital Markets Day, Helsinki, May 22, Participants from Sweco Mats Wäppling, President and CEO Jonas Dahlberg, CFO Bo Jansson, Senior Vice President Markku Varis, President FMC Group Andreas Gyllenhammar, Chief Sustainability officer Fredrik Hedlund, Head of Communications 2 1

2 Agenda Introduction to Sweco Nordic market leader Financial performance Industry leading value creation Mats Wäppling Jonas Dahlberg Lunch served Sweco + FMC Group Going for #1 in Finland Sustainable Engineering g and Design A powerful driver for Sweco s business Outlook and questions Mats Wäppling, Markku Varis Andreas Gyllenhammar Mats Wäppling 3 History More than 120 years at the cutting edge of technology 1889 Hugo Theorell starts Theorells Ingenjörsbyrå 1897 J. Gust. Richert establishes VBB 1930 VIAK, Olsson & Jonsson founded 1958 FFNS Arkitekter founded 1988 VBB acquires BECO. VBB group is formed 1997 FFNS acquires VBB group and Sweco is formed : New home markets in Finland, Norway, Denmark, Estonia, Lithuania, Latvia, Russia, Czech Republic, Slovakia, Bulgaria and Poland 4 2

3 Sweco s history in Finland PIC Engineering (1971) Sweco Industry, 2003 Paatela (1919) Sweco Architects, 2005 CM-Urakointi (1989) Sweco PM, 2006 Finnmap (1956) Sweco/FMC Group, 2012 Brunow & Maunula Sweco/Brunow & Maunula, (1980) Who we are Top 15 in Europe Subsidiaries and offices in 12 countries Ongoing assignments in 80 countries 7,600 employees 10,000 customers 30,000 assignments per year Net sales SEK 6.7 billion* * Proforma

4 Sweco s business segments Segment Share of net sales Infrastructure Water & Environment Structural Engineering Building Service Systems Energy systems Industry Architecture Project Management Geographic IT 16% 15% 15% 14% 13% 11% 8% 6% 2% 7 Combined expertise for sustainable urban development 8 4

5 Strong market positions Permanent presence in 12 countries and successful project export around the world Norway Finland Leading positions in Sweden, Norway and Finland Strong niche positions in Central and Eastern Europe Capacity to offer total solutions for international assignments Denmark Sweden Czech Republic Poland Estonia Latvia Lithuania Slovakia Russia Bulgaria 9 Positioned in strong geographies Macroeconomic indicators 2012 GDP growth, per cent Public debt, per cent of GDP Russia 3.8 Poland 2.9 Norway 2.1 Lithuania 2.0 Estonia 1.5 Sweden 0.5 Finland 0.5 Czech Republic 0.5 Euro zone -0.8 Source: SEB February 2012, Economist Intelligence Unit February 2012 N/A

6 Low risk in client mix Balanced base of around 10,000 clients Ten largest clients account for 20 per cent of net sales Sweco is not dependent of any individual clients Per cent of revenue Public sector 48% 52% Private sector 11 Long-term and profitable growth Net sales, SEK M Operating profit, SEK M CAGR 13% CAGR 20 % 12 6

7 High total return Total yield 10 years CAGR: +21 % CAGR: +6 % SIX Return Sweco B Total Return 13 Largest shareholders April 2012 Shareholder No. of shares A B Total Votes, % Shares, % G. Nordström and family 5,185,616 8,607, ,793, Investment AB Latour 1,222,760 27,775,000 28,997, Foundation J. Gustav Richert 1,769,420 40,025 1,809, Kas Depository Trust Company 5,109,460 5,109, ,6 JPM Chase Na 5,027,094 5,027, Swedbank Robur Funds 3,396,610 3,396, Anders Öhman 250,00 450, , Lannebo Funds 2,719,373 2,719, Eriksson family 148, , , Odin Sverige Aksjefondet 1,775,383 1,775, Other shareholders 830,173 26,531,074 27,361,247 19,6 29,8 Total 9,385,676 82,131,171 91,516,

8 Good conditions for continued growth Strong drivers for long-term growth - Urbanization, increased standard of living and sustainable development Strong market positions Profitable business model Strong brand and attractive employer Healthy finances 15 Financial performance Industry leading value creation Jonas Dahlberg, CFO Sweco 8

9 Highlights Q Best quarter ever - operating profit SEK 231 million Continued strong growth - Sweco now 7,600 employees Big improvement of Sweco Industry FMC Group contributes to the success Overall good market situation, but still uncertainty due to European debt crisis 17 Income statement Jan-mar Jan-mar Apr Full year SEK M Mar Net sales 1, , , ,987.6 Other external expenses , ,505.1 Personnel costs -1, , ,841.6 Amortisation/depreciation and impairment losses Operating profit Net financial items Profit before tax Income tax expense Profit for the period Operating margin Billing ratio Net sales growth 34% Operating profit + 69% Operating margin 12.1% Strong performance Norway, Sweden and Industry Positive price trend Transaction costs related to FMC Group SEK 12.1 million Amortization of intangible ibl assets related to acquisitions SEK 10.3 million Basic EPS Diluted EPS

10 Operating profit rolling 12 months 19 Listed peers with presence in the Nordics Market cap EUR millions* Revenues LTM EUR millions Operating margin Q1 Percent Revenue growth Percent Q1-Q1 Sweco ,1 34 ÅF ,0 13 Pöyry ,6 16 WSP** ,3 Grontmij ,6-3 Rejlers ,6 19 Source: Company reports, Bloomberg; * Market capitalization as of May 15; ** Full year

11 Operating margin of listed peers % 12% 10% 8% 6% 4% 2% Sweco ÅF Grontmij Pöyry Rejlers WSP 0% -2% % 21 Sweco in Finland, Q BA Finland Includes FMC Group from Feb 1 Operating margin 10.1% Net sales FMC Group SEK 132 million, operating profit SEK 13 million Overall stable market BA Industry >50% based in Finland Improved profitability, driven by improved billing ratio, especially in Finland Finnish market continues to improve Need for additional recruiting Jan-Mar 2012 Jan-Mar 2011 Net sales, SEK M Operating profit, SEK M Operating margin, % # of employees end of period 1, Jan-Mar 2012 Jan-Mar 2011 Net sales, SEK M Operating profit, SEK M Operating margin, % # of employees end of period

12 Sweco + FMC Group Going for #1 in Finland Mats Wäppling, President and CEO Sweco, Markku Varis, President FMC Group Sweco and FMC Group Second largest engineering consultancy in Finland One stop shop for engineering consulting Ambition for continued growth Going for #1 in Finland and the Nordics 24 12

13 Sweco and FMC Group Broadening service offering Achieving i full service offering and #2 position in Finland Strengthening growth platforms Combining FMC s positions in infrastructure, energy and water/environment with Sweco s Nordic leadership positions International opportunities Leveraging Nordic synergies and joining forces internationally 25 Combined locations 1,700 employees Offices at 24 locations Rovaniemi i Kemi Sweco and FMC Group FMC Group Sweco Oulu Nivala Pietarsaari Kajaani Vaasa Kuopio Seinäjoki Varkaus Jyväskylä Pori Rauma Turku Parainen Tampere Lahti Hämeenlinna Lappeenranta Kouvola Porvoo Helsinki, Espoo and Vantaa 26 13

14 Market positions Finland and Nordics Revenues Top 6, 2011, EUR millions Finland Nordics Pöyry 150 Ramboll 790 Sweco 123 Sweco 663 Ramboll 92 Cowi 504 Etteplan 69 ÅF 454 Neste Jacobs 64 WSP 289 FCG 50 Pöyry 228 Source: SKOL, Annual reports, Exchange rates average Market structure and Sweco s position Engineering consulting market in Finland 100% = MEUR 1,200 Sweco s position Other 4% Building Technology 36% #1 overall #1 in structural design Industrial engineering 36% #4 overall Infrastructure 25% Source: SKOL Niche positions in project management, bridge design 28 14

15 Business segments in Finland Structural engineering House building Industrial buildings Reconstruction Infrastructure Risk management services Building service systems HVAC and plumbing Electrical and telecommunication Building automation Energy- and life cycle services Tunneling technology Industrial and energy services Energy Chemical and petrochemical Pulp and paper Mining and mineral Offshore Water and Management and Architectural environment Expert services services Land use planning Infrastructure Health care Infrastructural House building House building utilities Industrial Residentials Water and waste water investments 29 Business segments FMC Group Structural engineering House building Industrial buildings Reconstruction Infrastructure Risk management services Building service systems HVAC and plumbing Electrical and telecommunication Building automation Energy- and life cycle services Tunneling technology Industrial and energy services Energy Chemical and petrochemical Pulp and paper Mining and mineral Offshore Water and Management and Architectural environment Expert services services Land use planning Infrastructure Health care Infrastructural House building House building utilities Industrial Residentials Water and waste water investments 30 15

16 Töölönlahti area - Helsinki, Finland Projects in Töölönlahti 1 1 Etera: Structural design, building services 2 Alma Media: Structural design 2 3 UPM Headquarters: Structural design 4 Etera / Lemminkäinen 5 Central Library (building lot reservation) 3 6 Music House: building automation design Photo: JKMM Architects 31 ALMA MEDIA, office building - Töölönlahti Kalasatama Centre Helsinki UPM headquarters - Töölönlahti Commercial center, health center, six residential towers, hotel and office tower. Total m

17 Subway, Helsinki Espoo Client: Espoo and Helsinki cities Building year: 2008 project planning, 2013 subway Lenght: about 13 km Structural design, building services principal design 33 Nuclear power plant design in Finland Olkiluoto 3 NPP Loviisa 1 & 2 NPP Posiva Oy, Final Disposal Facility Olkiluoto 1 & 2 NPP Photo: TVO/Hannu Huovila 34 17

18 Environmental Impact Assessment (EIA) Wind power parks Hailuoto-Oulunsalo coastal area Two wind power parks in Siikajoki Other EIA projects Technochemical factory in Heinävesi Biogas plant in Tarvasjoki and Nousiainen 35 Environmentally conscious design services OIH Maarinranta, LEED consulting Photo: Arkkitehtitoimisto Tuomo Siitonen As Oy Loviisan Ulrikanpiha, energyefficient accessible houses Photo: Arrak Arkkitehdit Oy 36 18

19 Market outlook building related services Stable market for commercial and office properties Rising volumes expected for public facilities Good market for transportation buildings Positive development for renovation and rebuilding services Declining demand for housing Overall rather stable Finnish market 37 Sustainable engineering and design A powerful driver for Sweco s business Andreas Gyllenhammar, Chief Sustainability officer Sweco 19

20 Sustainable engineering and design A powerful driver for Sweco s business Andreas Gyllenhammar, Chief Sustainability officer Sweco Outlook Mats Wäppling, President and CEO Sweco 20

21 Market outlook Trend Segment Share of net sales Overall good market situation Infrastructure Water & Environment 16% 15% Sweco s home markets have stronger GDP growth and healthier public Structural Engineering Building Service Systems Energy systems Industry 15% 14% 13% 11% finances than the European average But still uncertainty due to the European debt crisis Long-term drivers and trends: - Environmental awareness Architecture 8% - Urbanization Project Management 6% - EU expansion Geographic IT 2% 41 Going forward in Finland Develop the leadership position in building related services and industrial engineering Growth in infrastructure, energy and water/environment Achieved by a combination of organic and acquisition-based growth 42 21

22 Going forward in the Nordics and Europe Consolidate leadership position in the Nordics Strengthen growth platforms in Eastern Europe Consider acquisition in Western Europe if attractive opportunity arises 43 Sweco + FMC Group Going for #1 in Finland and the Nordics Capital Markets Day, Helsinki. May 22,